Statement on HB 1297, Prohibiting a New Hampshire Health Benefit Exchange

FOR IMMEDIATE RELEASE:                                                CONTACT:

January 19, 2012                                                                 Lisa Kaplan Howe, (603) 682-9944

                                                              

Statement on HB 1297, Prohibiting a New Hampshire Health Benefit Exchange

 

CONCORD – Today the Insurance Division of the New Hampshire House Commerce and Consumer Affairs Committee heard testimony about whether to try to prohibit a New Hampshire health benefit exchange.

An Exchange is a health insurance marketplace option intended to give individuals and small businesses

more choice and transparency about what insurance plans they can buy and how much they pay for coverage. Under the new health law, grant funding was made available for states to explore whether or not they would like to create a state-based Exchange and, if they choose, to design and establish their own Exchange at no cost to the state. In December, the Executive Council rejected a $333,000 federal planning grant for that purpose.

If the state does not proceed with establishing a state-managed exchange, the federal Department of Health and Human Services will instead create an Exchange to bring greater choice for affordable, quality health insurance to families and small businesses in New Hampshire. HB 1297, however, would prohibit the state of New Hampshire and all of its agencies, departments, and subdivisions from planning, creating, participating in or otherwise enabling a functioning exchange in our state.

“HB 1297 seeks to undermine an opportunity to provide New Hampshire families and small businesses more transparency and ease in shopping for health insurance,” said Lisa Kaplan Howe, policy director for NH Voices for Health. “We have hoped that the state would take the opportunity to maintain local control by planning for a state-controlled health benefit exchange. HB 1297 would prevent our state officials from even influencing the creation of the federally-run exchange. Leaders in our state have a responsibility to ensure that this public policy tool is designed in a way to best benefit New Hampshire residents.”

NH Voices for Health testified in opposition to the bill. Voices pointed out that preventing state officials from coordinating with a federally-created exchange for New Hampshire would violate steps required by federal law and create significant barriers to the creation of a sustainable and effective exchange in the state.

“Prohibiting state agencies from coordinating in any way directly conflicts with federal laws designed to ensure the exchanges address the needs of consumers and small business owners,” Kaplan Howe said. “Those requirements are the law of the land and our state departments have a duty to comply with them.”

Specifically, if the New Hampshire Department of Health and Human Services (DHHS) fails to comply with requirements related to coordination with the exchange to ensure a seamless eligibility system, New Hampshire risks losing all Federal matching funds for the Medicaid program.

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NH Voices for Health coordinates a statewide policy network of individuals, small businesses and advocacy organizations committed to ensuring a strong, high quality and affordable health care system for the families and businesses of our state.